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When it comes to marketing, the term "cohort" refers to specific experiences, events or other factors shared by a group of consumers. These cohorts are used to identify and target segments of the market that, although they may fit into other models, are more effectively grouped and treated as one.

Cohorts Versus Demographics

Cohorts are often confused with the general demographics that are typically used to segment the marketplace. Demographic groupings such as income level or age are not considered marketing cohorts. Cohorts are the things that separate specific groups of people even within their demographic groupings. For example, men between the ages of 55 and 70 are a demographic grouping. Men between the ages of 55 and 70 who share the experience of having served in the Navy on board aircraft carriers are a cohort. Cohorts are far more specific than standard demographic groupings and as such are a valuable tool for precisely targeted marketing campaigns and niche businesses.

Events

Special events are a natural cohort, and marketing teams are quick to seize upon them for promotional gain. For example, people attending a concert of some note will often feel as though they were present for something that was meaningful in their lives. This cohort creates an opportunity to promote and sell items that commemorate the event and focus on the concert as a defining moment.

Experiences

Shared experiences can account for valuable marketing cohorts that bank on the consumer's desire to remain a part of the past. The great depression was for all its trauma and hardship an experience that shaped many people, in particular their outlook on spending and saving. People who have lived through the lean times have a better understanding that they may return at any time and they live their lives in a state of semi-preparedness as a result. Marketing professionals may use such an experience as a cohort to identify segments of the population who may be more receptive to financial products like bank accounts, gold shares or life insurance.

Drawbacks

For all their marketing value, cohorts do have significant drawbacks. They are often too precise for most companies to use as a general marketing tool and can only be employed in cases where extreme drilling down of marketing methods and approaches are warranted. If your company handles the litigation for a specific type of illness contracted in a specific place and time, cohort marketing is the way to go. If you are advertising a general legal practice, there are better ways to reach a broader audience. The costs involved with collecting, then organizing the very specific data required to segment cohorts are also often prohibitive for many companies.

About the Author

Robert Morello has an extensive travel, marketing and business background. He graduated with a Bachelor of Arts from Columbia University in 2002 and has worked in travel as a guide, corporate senior marketing and product manager and travel consultant/expert. Morello is a professional writer and adjunct professor of travel and tourism.

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Morello, Robert. "What Are Cohorts in Marketing?" Small Business - Chron.com, http://smallbusiness.chron.com/cohorts-marketing-58265.html. Accessed 25 May 2019.

Morello, Robert. (n.d.). What Are Cohorts in Marketing? Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/cohorts-marketing-58265.html